Interest rates on 52-week Treasury bills rose...

Interest rates on 52-week Treasury bills rose to the highest level in more than three years. The Treasury Department sold $9 billion of the bills at an average discount rate of 7.72%, up from 7.40% at the July 28 auction. The rates were the highest since the one-year bills sold for 7.94% on May 14, 1985. The new discount rate understates the actual return to investors--8.32%, with a $10,000 bill selling for $9,219.40.